You establish a straddle on fincorp using september call and put options with a strike price of $80. the call premium is $7.00 and the put premium is $8.50.

a. what is the most you can lose on this position? (input the amount as positive value. round your answer to 2 decimal places.)

b. what will be your profit or loss if fincorp is selling for $88 in september? (input the amount as positive value. round your answer to 2 decimal places.)

c. at what stock prices will you break even on the straddle? (input your answers from highest to lowest to receive credit for your answers. round your answers to 2 decimal places.)

Aproduction line has three machines a, b, and c, with reliabilities of .96, .86, and .85, respectively. the machines are arranged so that if one breaks down, the others must shut down. engineers are weighing two alternative designs for increasing the line’s reliability. plan 1 involves adding an identical backup line, and plan 2 involves providing a backup for each machine. in either case, three machines (a, b, and c) would be used with reliabilities equal to the original three. a. compute overall system reliability under plan 1. (round your intermediate calculations and final answer to 4 decimal places.) reliability b. compute overall system reliability under plan 2. (round your intermediate calculations and final answer to 4 decimal places.) reliability c. which plan will provide the higher reliability? plan2plan1

What is the present value of the following cash flow stream at a rate of 12.0%? years: 0 1 2 3 4| | | | |cfs: $0 $1,500 $3,000 $4,500 $6,000a. $9,699b. $10,210c. $10,747d. $11,284e. $11,849

Describe what fixed costs and marginal costs mean to a company.